COMMONWEALTH OF AUSTRALIA
Sections 471 and 708
Offshore Petroleum and Greenhouse Gas Storage Act 2006
GRANT OF PETROLEUM PRODUCTION LICENCE VIC/L35
I, MONICA ELAINE MCINNES, Delegate of the National Offshore Petroleum Titles Administrator, on behalf of the Commonwealth–Victoria Offshore Petroleum Joint Authority hereby give notice pursuant to section 708 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 that life-of-field Petroleum Production Licence VIC/L35 has been granted to Beach Energy (Operations) Limited and OGOG (Otway) Pty Ltd over Graticular Block 2507 of the Map Sheet SJ54 (Hamilton), to have effect from and including 30 September 2024.
Petroleum Exploration Permit VIC/P43 ceases to be in force in relation to the above block upon the grant of Petroleum Production Licence VIC/L35.
MONICA ELAINE MCINNES
DELEGATE OF THE TITLES ADMINISTRATOR
ON BEHALF OF THE COMMONWEALTH–VICTORIA
OFFSHORE PETROLEUM JOINT AUTHORITY
Overview
The Offshore Petroleum and Greenhouse Gas Storage Act 2006, enacted by the Parliament of Australia, was introduced to regulate the exploration, production, and storage of petroleum and greenhouse gas in offshore areas. The Act was designed to address the need for comprehensive legislation that balances environmental protection with the economic benefits of offshore petroleum activities. The policy objective of the Act is to ensure that offshore petroleum activities are conducted in a manner that is environmentally sustainable and economically viable. The Act provides a framework for the regulation of offshore petroleum activities, including the grant of petroleum titles, the management of environmental impacts, and the facilitation of investment in the offshore petroleum sector. The 2024 grant of the Petroleum Production Licence VIC/L35 to Beach Energy (Operations) Limited and OGOG (Otway) Pty Ltd over Graticular Block 2507 exemplifies the application of the Act in facilitating offshore petroleum production while ensuring compliance with regulatory standards.
Scope and Application
The Offshore Petroleum and Greenhouse Gas Storage Act 2006 applies to the grant and administration of petroleum production and exploration permits within Australian waters, specifically in the Commonwealth–Victoria Offshore region. The Act provides the legislative framework under which the National Offshore Petroleum Titles Administrator, acting through a delegate such as Monica Elaine McInnes, can grant petroleum production licences to eligible entities for specified offshore areas. In this instance, the life-of-field Petroleum Production Licence VIC/L35 has been granted to Beach Energy (Operations) Limited and OGOG (Otway) Pty Ltd for Graticular Block 2507, located in the Hamilton area on Map Sheet SJ54, effective from 30 September 2024. The Act also stipulates that upon the issuance of a production licence, any existing exploration permits for the same block, such as Petroleum Exploration Permit VIC/P43, automatically cease to be in force. This legislative provision ensures a clear transition from exploration to production phases in offshore petroleum activities, thereby facilitating orderly and regulated development within Australia’s offshore petroleum sector.
Key Provisions
The key operative sections of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 in this context are sections 471 and 708. Section 471 pertains to the granting of Petroleum Production Licences, which are necessary for entities to undertake the production of petroleum in specific offshore blocks. Section 708 deals with the formal notification of the grant of such licences. In this instance, the Delegate of the National Offshore Petroleum Titles Administrator has granted a life-of-field Petroleum Production Licence VIC/L35 to Beach Energy (Operations) Limited and OGOG (Otway) Pty Ltd for Graticular Block 2507 of the Map Sheet SJ54 (Hamilton), effective from 30 September 2024. This licence supersedes the existing Petroleum Exploration Permit VIC/P43 for that block.
The grant of the Petroleum Production Licence VIC/L35 imposes specific obligations and requirements on the licensees, Beach Energy (Operations) Limited and OGOG (Otway) Pty Ltd. These include compliance with all provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and associated regulations, as well as any conditions attached to the licence. The licensees must ensure that all exploration and production activities are conducted in a safe, environmentally responsible, and efficient manner. This includes adhering to safety standards, environmental protection measures, and any specific operational protocols that may be mandated by the Commonwealth–Victoria Offshore Petroleum Joint Authority.
Breaching the terms and conditions of the Petroleum Production Licence VIC/L35 can result in significant consequences. Offences under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 may lead to civil penalties, including fines, and criminal penalties, which could involve imprisonment. The maximum penalties can vary depending on the severity of the breach, but they are designed to enforce compliance and uphold the regulatory standards set by the Act. The specific consequences and penalties for non-compliance are detailed in the Act and related regulations, and they serve as a deterrent to ensure that all parties adhere to the statutory requirements.